City, partners to expand tax foreclosure prevention program to keep Detroiters in homes

City Council approval sought to grow program to get homes out of foreclosure and resell to those renting them

Will seek $5 million in donations to fund program expansion

Quicken Loans has committed $1 million to expanded program

The city of Detroit is seeking Detroit City Council approval to expand a program that's buying Detroit homes out of foreclosure and reselling them to the people who had been renting them from delinquent owners.

As part of that effort, it's asked council to accept up to $5 million in donations for the program, city spokesman Tim Carroll said.

The program keeps renters in their homes, allows them to become homeowners and build equity as the city's housing market comes back.

Existing, qualified renters are given the opportunity to buy the homes for $2,500-$5,500, with the price determined according to the value of each home. The loans are interest-free and paid back over six months.

Funds from each home sale go back to fiduciary United Community Housing Coalition to be redeployed in the tax foreclosure prevention effort.

With council's approval, the expanded program will give 300 more Detroiters facing tax foreclosure the opportunity to remain in their homes and buy the homes they've been renting.

The city said it is also expanding outreach efforts to sign up eligible residents for payment plans and tax assistance programs as additional ways to prevent foreclosures.

The city's efforts to raise the funds to support the expanded foreclosure-prevention program come in the midst of other fundraising efforts.

On Monday, the city said it had raised more than $11 million to support Detroit's summer youth employment program, Grow Detroit's Young Talent.